#CreditCard #InterestFree #MacBook #Investment
Hey everyone! 💻✨ I’m in the market for a new MacBook and I’ve come across a tempting offer – 0% interest for 24 months if I buy it using a latitude-gem visa credit card. Sounds like a pretty sweet deal, right? But I can’t help but wonder, is it too good to be true?
Here’s my dilemma – I’m thinking of taking up the 0% interest offer and investing the money I would’ve paid upfront into some stocks instead. But I’m a bit wary… Are there any risks involved with this strategy?
Have any of you taken advantage of a 0% interest offer on a credit card for a big purchase like this? What was your experience? And do you think it’s a safe and worthwhile option for buying a MacBook?
I’d love to hear your thoughts and insights on this! Let’s help each other out – share your experiences and advice in the comments below. Let’s uncover if this is a smart move or a potential financial pitfall. 🤔💸 #FinanceDiscussion #InvestmentAdvice #TechPurchases
Consider any addational fees as a percentage of the total cost. Also interest free CCs are only as good as your finance habits? Many people make it work well for them but there is research and data that psychologically we spend more as humans when we have credit cards vs cash.
I do this all the time with big purchases. As long as you are quite good with money, it’ll be ok. But investment? Prob not a good idea. Just save the money you’ll pay apple.
For those smaller items I would also recommend to save up until you have the money. I know just too good how this shiny nice macbook looks, but don’t get in financial trouble. A wise man once said “if you need to think about if you can afford something, than you have your answer”
Assuming you already have enough cash savings to buy the MacBook outright: you are playing with fire but your plan sounds OK (at best). I would swap out the stocks for something that is guaranteed to be profitable (I.e a term deposit).
Keep in mind that your MacBook is guaranteed to depreciate in value. Not worth hedging that depreciation against some stocks in the hope that they *might* appreciate.
I’ve used Gem for a few purchases.
The trick is to completely be onto it with payments, You want to pay it 100% off long before the interest kicks in because like many ~~loan sharks~~ credit companies, They make their profits from the Financially inept.
Cut the card in half when it arrives so you’re never tempted to use it. And pay it off early.
Set a Email reminder to cancel the account as soon as it’s cleared. Don’t listen to them when they convince you to keep it open. Because if you’ve dealt with them before opening up a new line is very easy.
Using lines of Credit for Investment is either a genius move or a foolish move, that all depends on you being able to consistently produce a profit before the 55 day interest free period is over. Keep in mind you’d be relying on Buying and Selling for Profit which means all profits will be taxed at 33%.
So you’ll need to make more than 36% (Assuming fees) gains on anything you invest over a 55 day period.
If you can show me that you’re capable of consistent returns like that, You won’t need a Credit Card because you can take my money.
Personally, I dont buy overpriced electronics. A laptop 1/3 or even less can do the same thing. Most people use their laptops for emails, Word docs and surfing. You don’t need a fancy branded machine to do that. It may give you an ego boost but these habits keep people in financial messes for their lives.
Invest as much as you can and buy an adequate cheaper laptop
When it comes to laptops, an ex-lease thinkpad is a better purchase than a brand new macbook (or brand new laptop of any brand) for the vast majority of people. I just got a T490s with 16GB of RAM for $250 from an electronics recycler on trademe and it’s in near mint condition. This is a top-end laptop that was sold brand new for upwards of $1500 USD in 2019. It still feels and looks modern and is more powerful than I need.
Unless you are doing heavy duty video editing or triple A gaming, don’t waste your money.
Let’s say it costs $2,500 and you do well and make 15% net, your $ gain after Gem fees would be $190.
Assuming your investments are low cost, you are a great stock picker, you time the market and you don’t accidentally miss time a repayment and incur interest.
If your financial strategy hinges on repurposing the purchase price of a laptop to try and make a financial gain in the stock market, then you shouldn’t be investing.
Don’t borrow to invest, don’t overthink it!
Look into ASB visa light
odd answer I know but I would have advised for you to take the 0% interest to get the laptop if it was because you didn’t have the funds but you needed it for your job or something lol.
If you have the funds to pay outright, just do that.